The Central Bank of Iraq announced that the Financial Action Task Force has adopted a joint action plan with Iraq and issued a statement recognizing progress by Iraqi authorities in strengthening the country’s anti-money laundering, counter-terrorist financing and proliferation financing framework. The plan, agreed at the close of the FATF plenary, sets out the next areas of work for Iraq following its November 2024 mutual evaluation report and its subsequent engagement with FATF and the Middle East and North Africa Financial Action Task Force. According to the release, Iraq has already taken steps including market-entry controls to stop criminals and terrorists accessing key sectors, guidance for non-bank financial institutions and designated non-financial businesses and professions, risk-mitigation measures for the real estate sector, and a stronger official understanding of how legal persons can be misused for money laundering and terrorist financing. The action plan now focuses on nine areas: sharper assessment of specific money laundering and terrorist financing risks and related preventive measures; stronger detection of informal money or value transfer services; a legislative framework for virtual asset service providers; effective, proportionate and dissuasive sanctions for AML/CFT breaches; fuller application of targeted financial sanctions and politically exposed persons measures; higher-quality suspicious transaction reporting and greater use of financial intelligence, especially for higher-risk sectors and designated non-financial businesses and professions; stronger risk-based beneficial ownership controls; more money laundering investigations and case reviews; more terrorist financing investigations and prosecutions alongside technical compliance fixes; better understanding of risks in the non-profit sector; and stronger capacity to detect and counter evasion of targeted financial sanctions related to proliferation financing. The bank said Iraqi financial, judicial, supervisory and security authorities have committed to implementing the joint action plan to specified timelines. It added that the process is intended to support Iraq’s exit from enhanced follow-up.
Central Bank of Iraq2026-06-19
Central Bank of Iraq says FATF adopts joint action plan after noting progress on Iraq AML CFT controls
The Central Bank of Iraq said FATF has adopted a joint action plan with Iraq and acknowledged progress in the country’s AML/CFT and proliferation financing framework. The plan targets remaining gaps including informal transfer services, virtual asset providers, targeted financial sanctions, suspicious transaction reporting, beneficial ownership, and more money laundering and terrorist financing enforcement. Iraqi authorities have committed to implementing the plan to set timelines.